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The postentry performance of business groups’ new venture affiliates

Chien-Nan Chen, Chengli Tien and Bernard Gan
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Chien-Nan Chen: Department of Business Administration, National Dong Hwa University, Hualien Taiwan
Chengli Tien: Department of East Asian Studies, National Taiwan Normal University, Taipei, Taiwan
Bernard Gan: Department of International Business and Asian Studies, Griffith Business School, Griffith University, Nathan, QLD, Australia

Australian Journal of Management, 2019, vol. 44, issue 2, 325-343

Abstract: Using resource dependence theory, this study examines the determinants of firm performance among business groups’ new venture affiliates using a sample of 1512 new venture affiliates associated with 104 large-sized business groups in Taiwan. The empirical findings reveal that improved affiliate postentry performance is linked to the relative size of a business group’s new venture affiliate and the level of autonomy inherent in decision-making. Furthermore, when the product market of a new venture affiliate is resource-related to its affiliated business group’s main business, this affiliate may benefit from resource relatedness with an improved return on equity. JEL Classification : M10, M16, M38

Keywords: Business group affiliate; new venture; postentry performance; resource dependence (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:44:y:2019:i:2:p:325-343

DOI: 10.1177/0312896218792965

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